Errr... need to correct you with some things...
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Originally Posted by 666fast
GT5- I couldn't care less at the mmoment, it's many many years off
Teken- I dont' play fighting games, never really liked them, available for Xbox as well
Virtua Fighter- ^^
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Both these games were never available for the Xbox. Tekken practically belongs to Sony. It's a Sony-only title. Virtua Fighter was never made for the Xbox, simply because nobody in Japan (VF's largest market) bought one.
You might think that these aren't significant (because you don't play fighting games) but Tekken, Virtua Fighter, and Soul Calibur are huge franchises in Japan and Korea; nations that literally take games seriously. Ever heard of videogame olypics/tournaments where winners pocket $250,000? Korea and Japan hold those. Tekken is also the most popular 3D fighting game in the US, with Virtua Fighter and Soul Calibur running a close second.
The fact that Sony had all three titles on the PS2 was of significant importance. Tekken and Soul Calibur are already guaranteed on the PS3 (because the arcade boards they run on are practically PS3-based), and Sega isn't one to hold back handing over Virtua Fighter to the console with the largest market share in Japan, which is why they had two Virtua Fighter 4's (VF4 and VF4:Evo) for the PS2.
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It doesn't have the games it needs to gain any market share.
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It certainly does, otherwise it wouldn't be in second place, behind the Sony hypemachine. Tekken was available for the Xbox, with better visuals. Halo is a huge game anywhere. Fable, Morrowind, KOTOR and many more.
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Second place in America maybe, but a distant third overall. They are in an even worse position now, especially after Nintendo announced that you could download any and all the past titles onto their new console and play them. That's a whole load of classic games, most of which are extremely popular (to the point of achieving cult status) in Japan, Korea, and the rest of Asia and Europe.
A lot of Xbox's "main" games don't appeal to a worldwide audience, and they don't have any of the classic must-have titles that gamers look for. They only have presence in the USA which, for all intents and purposes, isn't good enough.
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It only sold decently in America
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Worlds largest market.
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Not exactly. Largest potential market yes, but it isn't the biggest. More games are sold in Japan than anywhere else in the world. GTA sold about 7 million copies in the US and Europe, whereas each Final Fantasy game sells for about twice or thrice that, and 60% of those sales are based in Japan.
Keep in mind that aside from this title, Xbox 360 doesn't have anything else at the moment. Halo is unknown in Japan (because FPS aren't popular there), and most of Xbox's main sellers do not appeal to a worldwide market either, GTA included.
Worldwide sellers are the ones that carry the most weight in terms of drawing potential buyers. Sony owns Gran Turismo, arguably the game with the most worldwide appeal, and which sells tremendously well in Japan, Korea, the US, and Europe. Tekken is a Sony exclusive as well, and it too, sells very well in Japan, Korea, US, and Europe (for a fighting game). Pro Evolution Soccer (or Winning Eleven as it's called in Asia) is a very important title as well. It's the best selling console football game in Japan and Korea. You've also got the Dragon Warrior RPG series, Final Fantasy, Front Mission, Capcom's games, and all the other Japan-sourced classics.
Point is: The best games (biggest development budget) will appear on the
console with the largest TOTAL market share, because that's where the profits lie. The largest total market share is created by the amount of exclusive titles + popular 3rd party titles. Sony nailed it both times with the PS1 and PS2, there's no way they'll get it wrong for the PS3.
Besides, 1 in I believe 3 US homes have a Playstation. PS3 will be the automatic choice for mommies and daddies stateside because they can still play the hundreds of PS1 and PS2 games they bought little John et al.
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And just for the record, I'm not a Sony/Nintendo fanboy
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Then you shouldn't be so quick to dismiss a console that has yet to even hit the market. You should also realize the Xbox has more than just Halo going for it.
I'm not gonna tell you what to buy, but I am gonna tell you not to ignore the Xbox 360. Many many many games have been announced that are looking all sorts of awesome.
None of it matters though, as neither the Xbox, PS2, or Nintendo were the best of this generation. Dreamcast baby! Man that had some awesome games.
I've totally ruined this thread. 
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I'm not dismissing anything. I knew what was going to happen to the Xbox when it was first released. I knew what was going to happen to NeoGeo, Sega, and Atari as well. I've literally watched this industry with personal interest since the days of the Commodore 64 (my dad had one) all throughout Atari, Nintendo, and now PS3.
Microsoft hasn't learned their lesson at all. They still haven't seen the golden rule of succeeding in this industry. It's not just about titles or graphics or what not. It's about Japan first, the West second. If you don't have the Japanese market covered before you try and sell to the US and Europe, you're not going anywhere.
Honestly, I could probably write up a full thesis explaining why Sony's PS3 will quash MS's Xbox 360 and why Nintendo will remain a cult favorite, but I wouldn't want to bore you.